MassDOT: Solar Farms Can Save Commonwealth Millions In Energy Costs

Massachusetts Lieutenant Governor Karyn Polito, MassDOT Secretary and CEO Stephanie Pollack, Highway Administrator Thomas J. Tinlin, Ameresco CEO George Sakellaris were in Framingham Tuesday to launch the MassDOT Solar Photovoltaic Energy Program.

This program constructed ground-mount solar PV generation facilities at multiple state-owned properties along the Massachusetts highway system, including three locations in Framingham and one in Natick, to save the Commonwealth energy costs.

Under the negotiated power purchase rate and the current Massachusetts net metering policy, this project is projected to generate a total of at least $15 million in savings/revenue (aggregated cash flow) over the 20-year period of the contract.

Lt. Gov. Polito was joined by the state leaders, the CEO of Ameresco and Framingham State Rep. Tom Sannicandro at a ceremony at The MassPike service plaza westbound in Framingham for the brief ceremony yesterday.

The purpose of the program is to build ground-mount solar PV generation facilities at multiple state-owned properties within the state highway layout throughout Massachusetts.

Mass DOT leased 10 parcels of land next to state highways to Ameresco, a private Framingham company, who built and maintains solar farms.

Ameresco built and operates the small solar farms on the sites.

Solar PV arrays of 6 MW aggregated capacity in the Northeast region can generate approximately 7,800,000 kWh electricity per year, which is equivalent to the average power consumption of 1,285 homes in Massachusetts.

A minimum of 6 Mega Watts of solar power generation systems will be provided from this multi-site project.

MassDOT’s development of solar PV facilities within the state highway layout is driven by the desire to:

• Create energy savings by producing electricity locally and economically
• Generate revenue by utilizing underutilized state land
• Reduce greenhouse gas emissions via renewable power generation technologies
• Support the Commonwealth’s green and clean economy

MassDOT chose a “public-private partnership” business model to implement the program, which allows the agency to benefit financially in multiple ways:

• Zero upfront capital cost for the state. The public-private partnership requires that Ameresco be responsible for the development, design, construction, commission, operation and maintenance of the solar facilities. The developer will eventually recover its costs over time through solar renewable energy credits, electricity sales, and federal tax incentives.
• Full utilization of Federal Corporate Tax Incentives. The involvement of the private developer allows the project to utilize the Federal Investment Tax Credits (i.e., 30 percent total system costs can be directly subtracted from the system owner’s income tax) as well as the Modified Accelerated Cost Recovery System (tax base deduction centered on an accelerated property depreciation schedule). These incentives bring down the overall project capital costs by more than 50 percent.
• A favorable electricity rate schedule for the next 20 years. MassDOT is committed to purchase 100 percent power generated from these solar facilities under a predetermined rate schedule; and the negotiated rates are significantly lower than the current utility rates.
• Energy savings through virtual net metering. The Massachusetts net metering policy allows qualified host customers (in this case, MassDOT) to obtain net metering credits for exporting excess power to the grid. MassDOT will benefit from the difference between the net metering credits it receives from utilities and the power purchase payments it makes to the developer.
• Lease revenue. MassDOT will receive annual rent payments for the developer’s leasing of the land supporting the facilities.